Spotify‘s market cap hit its highest point of 2019 at market close yesterday, giving the company a valuation of $27.87bn.
That meant Spotify’s market cap was worth over $5bn more than it was just six weeks prior, on June 3, at its lowest market-close on the NYSE this calendar year ($22.19bn).
In the past few hours, however, SPOT’s share price has taken a serious dent – after Bloomberg’s Terminal reported that Apple is about to make a major investment in creating its own podcast content.
Such a move would see Apple directly attack a field which Spotify sees as a key area for growth in 2019.
Daniel Ek‘s company has earmarked between $400m and $500m to spend on acquiring podcast content and tools this year – the majority of which has already gone on its purchases of Gimlet Media and Anchor.
At one point today, following the news that Apple was gearing up to create original podcasts, SPOT’s stock was down over 3% – wiping more than $500m off the company’s market cap.
At the time of publishing (2.55pm ET), SPOT’s stock is down 1.89% today, giving it a $27.34bn market cap.
Until the Apple news, Spotify’s investors were enjoying the early onset of summer.
SPOT’s closing market cap of $27.87bn yesterday (July 15) represented its highest point in nearly nine months.
The lowest point so far for SPOT’s stock in its history on the NYSE came at the close of December 21 last year, when its market cap tumbled to just $19.35bn.
Since then, to yesterday, the company’s market valuation has rebounded by a whopping $8.5bn.
Spotify’s performance on the New York Stock Exchange has largely mirrored that of the markets more generally.
The S&P 500 shows a market lull in late December last year, with another dip in late May / early June this year, before a storming recovery in recent weeks.Music Business Worldwide